{"id":2238,"date":"2019-03-08T21:57:00","date_gmt":"2019-03-08T21:57:00","guid":{"rendered":"https:\/\/mycal8.com\/wordpress\/index.php\/2019\/03\/08\/conflict-of-interest\/"},"modified":"2019-03-08T21:57:00","modified_gmt":"2019-03-08T21:57:00","slug":"conflict-of-interest","status":"publish","type":"post","link":"https:\/\/mycal8.com\/wordpress\/index.php\/2019\/03\/08\/conflict-of-interest\/","title":{"rendered":"Conflict of Interest"},"content":{"rendered":"
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\nConflict of Interest<\/span><\/strong><\/div>\n<\/div>\n

\nSome firms can run aground when it starts to move into uncharted areas or business gray areas of vertical business concerns. For example, suppose that a car dealer might want to advise a customer, you, further on importing three-wheel bikes from Brazil. It turns out these three-wheel bikes only come disassembled in the box. Worse than that, the wheels have to be ordered separately from the Far East. And further, all of a sudden, the price of the wheels have somewhat tripled over the next two days after receiving the first shipment of bikes from Brazil.<\/div>\n
\nNow you are stuck with a container full of three-wheel bikes with no wheels to meet your initial pricing model. The car dealer had no way of knowing that crucial fact because he only has one three-wheeler that a customer traded in on a new car. Fact is, the car dealer did not do due diligent, or fact-finding on, the intricate details, of the importing of that particular three-wheeler brand at all. Owing to the advice you the customer jumped in with both feet on the investment \u2013 cost when to the roof. You the customer acquired a letter of credit from the local bank to cover, from FOB to the customer, of which there was a default on that particular note. Now, do you think you should sue the car dealer on the premise that he supplied you with bad advice?<\/div>\n

\nThe way to A.C.E. such conflicts of interest is to apply these three sounding boards:<\/p>\n

\n“A = Awareness.<\/strong>The first tip to ACE conflicts<\/a>\"\" of interest is \u201cawareness.\u201d
\nBe aware of areas where potential conflicts of interest may develop. These may include, but are not limited to:
\n* Providing services to clients in the same industry;
\n* Advising the client to invest in a business in which a member of the CPA firm has a financial interest; or
\n* Providing forensic investigation services to a client in anticipation of litigation against another CPA firm client.
\nC = Communications.<\/strong>\u201cCommunication\u201d is an important safeguard to help ACE conflicts of interest and involves the three D\u2019s\u2013disclosure, decisions, and documentation.
\nE = Exit<\/strong>In many circumstances, the CPA firm can establish and implement safeguards to reduce the threat to integrity and objectivity to an acceptable level. In addition to communication, other examples of safeguards may include, but are not limited to:
\n* Implementing mechanisms to prevent unauthorized disclosure of confidential information, including the creation of separate engagement teams and physical and electronic separation of confidential information, including workpapers, of the clients at issue; and
\n* Having workpapers and deliverables reviewed by someone independent of the client services engagement team to assess whether key judgments and conclusions are appropriate.”<\/p><\/blockquote>\n<\/blockquote>\n

\nIn short, stay away from areas that do not pertain directly to your business model or function. Per example, you sold a car battery, now the customer wants you to go out in the parking lot and install the battery. Your major function is that of a salesperson \u2013 by moving forward with installing the battery you would be moving also into that of liability exposure. So, \u201cdo one thing and do it best,\u201d is good advice.<\/div>\n
\nBy James Byrd, MBA<\/a><\/strong><\/div>\n
\n<\/div>\n
\nSource: <\/strong>
\nManaging conflicts of interest.. (n.d.) >The Free Library. (2014). Retrieved Aug 12 2018 from https:\/\/www.thefreelibrary.com\/Managing+conflicts+of+interest.-a0514405686<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Conflict of Interest Some firms can run aground when it starts to move into uncharted areas or business gray areas of vertical business concerns. For example, suppose that a car dealer might want to advise a customer, you, further on importing three-wheel bikes from Brazil. It turns out these three-wheel bikes only come disassembled in […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9,11,6],"tags":[],"class_list":["post-2238","post","type-post","status-publish","format-standard","hentry","category-business","category-management","category-marketing"],"aioseo_notices":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/mycal8.com\/wordpress\/index.php\/wp-json\/wp\/v2\/posts\/2238","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mycal8.com\/wordpress\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycal8.com\/wordpress\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mycal8.com\/wordpress\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/mycal8.com\/wordpress\/index.php\/wp-json\/wp\/v2\/comments?post=2238"}],"version-history":[{"count":0,"href":"https:\/\/mycal8.com\/wordpress\/index.php\/wp-json\/wp\/v2\/posts\/2238\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycal8.com\/wordpress\/index.php\/wp-json\/wp\/v2\/media?parent=2238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycal8.com\/wordpress\/index.php\/wp-json\/wp\/v2\/categories?post=2238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycal8.com\/wordpress\/index.php\/wp-json\/wp\/v2\/tags?post=2238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}